As expected Gold prices have gone up immediately after Fed’s announcement of third round of quantitative easing (QE3) yesterday, QE3 plans is open-ended and involves the purchase of mortgage backed securities at a pace of USD 40 bn per month. Gold prices has been increasing since 31st August when Bernanke gave some hint about QE3 Positive developments in the Euro zone including the announcement of ECB’s unlimited asset purchase and German constitutional court’s backing of the ESM aided gains in the yellow metal. The announcement of QE3 is expected to support the Bull Run in gold in the coming months as was experienced in QE 1 & QE2. Gold price had increased by 22% during QE1 and 12% during QE2 and this time also it is expected . Gold is currently trading at USD1775/ounce and expected to touch USD 1850 in the next few Months.
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